Banks have policies that they follow before they credit or take the money in your account whenever you make a purchase or when you make a deposit. Knowing the available balance that you have and the exact amount of money you can use from your bank account is important in order to avoid overdrawing your account.

An overdraft is when you spend more than what your bank says you have available in your savings or checking account. Unwanted overdraws in your account are possible but can be avoided.

Many people do not know that with limited funds in your bank and not understanding bank policies, you can unexpectedly overdraw their accounts.

This video will show you how an overdraw in your account can happen, how to avoid it and give you a few tips on how to protect yourself from overdrawing your account.